Energy efficiency and structural reforms will lead to increased energy availability in Saudi Arabia; this is according to a study carried out by the King Abdullah Petroleum Studies and Research Center (KAPSARC).
The center also said that adjusting energy prices will help toward economic stability, as increases in electricity prices leads to a reduction in the demand and consumption of natural gas.
The center called for further studies of the energy sector whilst also calling for stronger partnerships with local stakeholders to implement energy efficiency steps that will help contribute to the attainment of the Kingdom’s Vision 2030 objectives.
The current structural reforms in the Kingdom will lead to the development of high value manufacturing industries, beef up the local supply chains along with the maintenance of competitiveness through the efficiency of energy; the study finds.
David Hobbs, the vice President of Research at the center noted that over the last decade, the Kingdom has invested heavily in the mechanical, electrical and sanitary sectors, yet the local supply of gasoline is yet to be satisfied.
Visiting Researcher at Saudi Aramco Ibrahim Al-Gunaibet says increases in domestic fuel prices and diversifications in public transportation make it difficult to estimate future energy decisions of customers.
Al-Gunaibet’s own study focused on developing a mathematical model that will help in accurately forecasting consumer decisions based on a number of factors. The mathematical model was to help gauge the effects of high fuel prices as a result of anticipated demand on public and private transportation, fuel consumption, and household budgets across the Kingdom.